We will stick to it.
In an era of rampant globalisation, our pursuit of good governance necessitates the formulation of transnational, legal and administrative instruments to regulate cross-border trade and investment, and the many risks that are associated with these activities.
The Cross-Border Insolvency Bill emanates from a UN initiative that envisaged the strengthening of co-operation between competent authorities of countries implicated in the winding up of the affairs of judgment debtors with international assets and affairs. The adoption of this legislation is another clear signal that we believe in international co- operation and the harmonisation of legislation where public interests are at stake.
The Bill authorises a trustee, liquidator, judicial manager, curator of an institution, or receiver, to act in a foreign state in respect of proceedings under the law of the Republic of South Africa relating to insolvency, as applicable by the foreign law.
The United Nations General Assembly adopted a resolution, co-sponsored by the Republic of South Africa on 15 December 1997, recommending that member states review their legislation on cross-border insolvency. By way of progress, the international body had advanced a so-called model law on cross-border insolvency of the UN Commission on International Trade Law, or Uncitral. In our own legislative process we relied on the recommendations of the SA Law Commission, which considered the proposed enactment of the international framework from a South African law perspective.
The purpose of the prototype legislation is to promote a harmonised framework of modern and fair legislation for cases where an insolvent debtor has assets in more than one state. The Bill responds to the need for greater legal certainty at a time when more and more entrepreneurs and some racketeers are spreading their assets and investments across international borders.
The preamble of the Bill further highlights the need for an effective mechanism to deal with cases of cross-border insolvency so as, firstly, to secure fair and efficient administration of cross-border insolvencies that will protect the interests of all creditors and other interested persons, including the debtor; secondly, to secure the protection and maximisation of the value of the debtor's assets; and, thirdly, to facilitate the rescue of financially troubled businesses, thereby protecting investment and preserving employment.
I encourage all members of the House to familiarise themselves with the extensively developed background introduction as detailed in the memorandum on the objects of the Bill. The South African legal framework before us today is therefore based on the UN's model law. However, important amendments and additions were made to comply with South African constitutional requirements and our own special needs. The rationale for the development of the Bill is another indicator of this country's role as a key player in international efforts to harmonise legal mechanisms and instruments in this arena. It is also a clear demonstration of our commitment to join the international community in clamping down on country-hopping corporate delinquents and insolvents.
I would like to thank the select committee and its chairperson, Comrade Mahlangu - should the member object - for their rigorous scrutiny of this piece of legislation and for the dedication and energy they have devoted to processing this Bill. It is also my pleasure to thank the dedicated officials from the Department of Justice and Constitutional Development who developed and drafted the legislation. Both Mr Johan Labuschagne from the legislation directorate and Mr Tienie Cronje from the SA Law Commission were instrumental in bringing the Bill to Parliament in an efficient and speedy manner. [Applause.] I thank them for their co-operation.